Gold has reinforced its “double top.” Strategists at Credit Suisse expect the yellow metal to suffer further weakness.
Only a convincing weekly close above $1,712 would ease the pressure
“Gold below $1,691/76 has reinforced its existing large ‘double top’. Hence, with a top in place, we expect gold to come under renewed pressure. We note that the next support is seen at $1,614, then $1,560 and eventually $1,451/40.”
“Only a convincing weekly close above the 55-day average at $1,712 would ease the pressure on the precious metal, with next resistance then seen at the even more important 200-day average, currently at $1,817, which we would expect to cap at the very latest.”